Emerald Tyre: Driving Growth and Innovation in H1 FY26

Emerald Tyre Manufacturers Limited, a prominent player in the off-highway and industrial tyre segment, has reported a robust performance for the first half of fiscal year 2026 (H1 FY26). The company's consolidated total income reached 108.92 crore, marking a significant increase from the previous year. This growth was underpinned by a strong operational showing, with consolidated EBITDA jumping to 18.68 crore, reflecting an impressive EBITDA margin of 17.15%. Net profit after tax (PAT) also saw a healthy rise to 7.56 crore, translating to a PAT margin of 6.94% for the period. These figures highlight Emerald Tyre's resilience and strategic execution amidst evolving market dynamics.

The company's performance is a testament to its focused approach on product innovation, capacity expansion, and market diversification. The management emphasized that the increase in profitability and margins was achieved despite challenging market conditions, particularly in the US. Emerald Tyre's ability to provide products as comprehensive solutions, rather than just mere tyres, has fostered strong customer relationships, with many investing in moulds and facilities for jointly developed products.

Strategic Expansion and Product Innovation

Emerald Tyre has been diligently working on its expansion plans, funded by its initial public offering (IPO) last year. The new world-class mixing plant, a cornerstone of this expansion, is on the verge of full operation, with dry and wet runs currently underway and full functionality expected within 15-20 days. This initiative is set to bring substantial cost savings and enhance product quality by bringing the mixing process in-house. Concurrently, the solid tyre plant has already commenced production with new machines, and a significant portion of the new moulds have been received and are undergoing final checks.

A key highlight of the period is the successful introduction of the 'AXIMO' super premium solid tyre. This innovative product has garnered significant attention and positive feedback, particularly in the Middle East and Europe, where trials have demonstrated exceptional performance. The market's eager anticipation for its supply underscores its potential as a game-changer, expected to drive considerable volume growth in the coming months and contribute to higher margins due to its premium positioning and advanced technical specifications.

Market Diversification and Global Presence

Recognizing the need to mitigate risks associated with reliance on specific markets, Emerald Tyre has aggressively pursued market diversification. While the US market faces certain challenges, the company has successfully increased its business there and is actively expanding its footprint in other high-potential regions such as Australia, Latin America, Saudi Arabia, and Southern Africa. New AXIMO tyres and improved existing versions are already generating orders in these markets. The company is also engaged in 10-15 projects across various international markets, including Brazil and Italy, and is in discussions with seven OEMs to establish regional stocking points and enhance supply chain efficiency.

This proactive approach to global expansion, supported by wholly-owned subsidiaries in Belgium and the UAE, strengthens Emerald Tyre's position as a preferred OEM supplier and a trusted export partner. The company's commitment to quality is further reinforced by its ISO 9001:2015 and ISO 14001:2015 certifications, along with adherence to EU REACH standards, ensuring rigorous quality checks and continuous product improvement through in-house R&D.

Financial Summary

Outlook and Future Trajectory

Management has provided an optimistic outlook, guiding for a 25-30% top-line growth in FY26, targeting a consolidated turnover of approximately 250-260 crore. The company is confident in achieving a peak revenue capacity of around 350 crore by FY28, leveraging the full benefits of its capacity expansion. The operational efficiencies gained from the new mixing plant are expected to further enhance performance in the coming fiscal year.

Emerald Tyre's strategic focus on high-end industrial tyre applications, continuous product innovation, and aggressive market diversification positions it for sustained growth. The company's disciplined execution and proactive risk management, including efforts to recover outstanding receivables and adapt to market shifts, underscore its commitment to long-term value creation for shareholders. With its robust H1 FY26 performance and clear strategic roadmap, Emerald Tyre is well-equipped to capitalize on emerging opportunities in the global off-highway tyre market.